Executory Contract
/ɪɡˈzɛkjʊtɔːri ˈkɒntrækt/
Definitions
- (n.) A contract under which both parties have ongoing obligations to perform at a future time, often relevant in bankruptcy law when unfinished duties impact asset classification.
The debtor's executory contracts must be assumed or rejected during bankruptcy proceedings.
Forms
- executory contracts
Related terms
See also
Commentary
In bankruptcy, identifying an executory contract is key to deciding if it should be assumed or rejected; typically, it requires both parties to have material unperformed obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.